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Business Organizations FAQ

Numerous websites offer to form a corporation for bargain prices less than $300. How much will SKBW charge, and what additional value is provided for that price?

A simple incorporation or other entity formation (i.e., limited liability company) will typically cost about $500 plus an $85 filing fee, and we often provide this service for a flat fee once we know the scope of work to be done. Although this cost may be slightly higher than a website provider would charge, we provide a level of personal service that you should expect when entrusting someone to guide you through the process of what will likely end up being a major investment on your part.

The website providers won't do anything more than you could do for yourself with a small amount of research, but we'll provide the assurance that you're getting the proper foundation for your new business or investment. There may be additional charges if there is complexity to the formation such as a buy-sell agreement among co-owners, complexity to the management structure, or other extraordinary situation. For the base fee, wWe will provide advice regarding the proper entity to be used. Different entities may lead to vastly different tax consequences, and the website providers will not be able to explain which type of entity suits your needs. We will also handle the IRS filings required, which the website providers typically do not do - leaving you with a hidden cost in you having to pay your accountant to do this later.

Finally, we are capable of completing all phases of the incorporation, including obtaining your federal taxpayer identification number, within 24 hours if you require that level of urgency. Our services are more timely, greater in scope, and more personalized than the website providers can offer. Granted, there may be some circumstances where the cookie cutter services you can obtain via the internet will satisfy your needs, but since you're investing a great deal of money in starting a new business, we believe it wise to spend a few hundred dollars extra to be absolutely certain you're getting exactly what you need.

My corporation or other entity is formed. What do I need to do to maintain it?

The Indiana Secretary of State requires most entities to file a biennial report with a filing fee of $20-$30, depending on the entity and manner of filing. This form is simple to complete, but it is often forgotten. The reminders from the Secretary of State can be confused for junk mail and therefore discarded without proper attention. Failure to file these reports eventually leads to administrative dissolution of your corporation, which can be costly to fix. Indiana law also requires you to maintain your record book with annual minutes of shareholders and directors. It's debatable whether this is relevant for an entity with only one shareholder and director, but it's unquestionably important for any entity with multiple owners and/or directors.